IBD Stock Analysis
- Stock broke out of six-week flat base Thursday; buy point at 161.17
- Recent bounces off 10-week moving average offered buy chances
- IBD Composite Rating is 95 of 99; Relative Strength Rating is 82
Industry Group Ranking
* Not real-time data. All data shown was captured at
1:10PM EST on
Qualcomm (QCOM) is the IBD Stock Of The Day as the wireless-chip maker benefits from expected smartphone sales growth this year. Qualcomm stock surged into a buy zone on Thursday.
In morning trading on the stock market today, Qualcomm stock broke out of a six-week flat base at a buy point of 161.17, according to IBD MarketSmith charts. The 5% buy zone extends up to 169.23.
In afternoon trades, Qualcomm stock was up 3.1%, near 162.25. Investors could have started a position in Qualcomm stock in the past couple of weeks after it bounced off its 10-week moving average line, according to IBD analysis.
The San Diego, Calif.-based company has had an eventful 2021 so far.
New CEO, Nuvia Acquisition Kick Off 2021
On Jan. 5, the Qualcomm board of directors announced that Cristiano Amon will succeed Steve Mollenkopf as chief executive, effective June 30. Amon, who has worked at Qualcomm since 1995, is currently company president. Mollenkopf is retiring after 26 years at Qualcomm, including the last seven as CEO.
On Wednesday, Qualcomm announced an agreement to buy startup Nuvia for about $1.4 billion. Santa Clara, Calif.-based Nuvia develops central processing units for high-performance computing applications.
The next potential catalyst for Qualcomm stock is its fiscal first quarter earnings report on Feb. 3. Wall Street predicts Qualcomm earnings of $2.08 a share, up 110% year over year, in the December quarter. Analysts are looking for sales to rise 63% to $8.24 billion in the period.
Qualcomm Stock Called A ‘Key Idea’
KeyBanc Capital Markets analysts on Wednesday listed Qualcomm stock as one of their “key ideas” among semiconductor stocks for 2021. The investment bank expects Qualcomm to profit from smartphone sales returning to growth this year thanks to the rollout of 5G wireless handsets.
KeyBanc forecasts smartphone unit shipments to rise 9% in 2021 after falling 5% in 2020.
KeyBanc rates Qualcomm stock as overweight with a price target of 180.
Ranks Seventh In Its Industry Group
Qualcomm stock ranks seventh out of 31 stocks in IBD’s Electronics-Semiconductor Fabless industry group. It has an IBD Composite Rating of 95 out of 99, according to the IBD Stock Checkup tool. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Qualcomm has an IBD Relative Strength Rating of 83. That means it has outperformed 83% of stocks over the past 12 months.
Also, Qualcomm stock has an IBD Accumulation/Distribution Rating of B-, which indicates slightly better-than-average institutional buying.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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